§ 16-34. Privilege license tax for electronic gaming operations

(a) For the purposes of this section, the term "electronic gaming operation" means the following: Any business enterprise, whether as a principal or accessory use, where persons utilize electronic machines, including, but not limited to, computers and gaming terminals (collectively the "machines"), to conduct games of chance, including sweepstakes, and where cash, merchandise or other items of value are redeemed or otherwise distributed, whether or not the value of such distribution is determined by electronic games played or by predetermined odds. Electronic gaming operations may include, but are not limited to, internet cafes, internet sweepstakes, electronic gaming machines/operations, or cybercafes. This does not include any lottery approved by the State of North Carolina or any nonprofit operation that is otherwise lawful under state law (for example, church or civic organization fundraisers).

(b) The fee schedule is hereby amended to include a two thousand dollar ($2,000.00) annual privilege license tax for each electronic gaming operation.

(c) In addition to the amount levied in subsection (b), each electronic gaming operation shall pay an additional annual privilege license tax of two thousand five hundred dollars ($2,500.00) for each electronic gaming machine used or stored as part of the electronic gaming operations. For example, an electronic gaming operation having one machine shall pay an annual privilege license tax of four thousand five hundred dollars ($4,500.00), an operation having two (2) machines shall pay an annual privilege license tax of seven thousand dollars ($7,000.00), and so forth.

(d) All provisions of any town ordinance or resolution in conflict with this ordinance are repealed.

(e) This section shall become effective upon adoption.

(Ord. of 4-20-10)